Dairy industry promotes integration

Vinamilk has strengthened investment in modern machinery and equipment

Potential

The Vietnamese dairy market has recorded high growth in recent years. According to the Euromonitor International, the Vietnamese dairy industry achieved revenues of VND75 trillion in 2014, an increase of 20 percent compared to the previous year and this figure is expected to stand at VND92 trillion in 2015.

The Vietnam Dairy Association said that the country currently has around 75 dairy manufacturing and processing enterprises. The number of dairy cows has increased by an average of 14 percent a year in the past five years, reaching nearly 230,000. According to forecasts, the country would produce 1.9 billion liters of milk this year and consumer demand would stand at 21 liters per person a year by 2015 and 27-28 liters per person a year by 2020.

The Ministry of Agriculture and Rural Development’s Department of Livestock Production Deputy Director Tong Xuan Chinh said that the dairy industry has maintained high growth although facing difficulties. In addition, the country’s total dairy production currently only meets 28.3 percent of domestic consumer demand. Therefore, development potential for its industry remains huge.

“Thanks to geographical characteristics, favorable climate and plentiful feed in addition to improved quality of milk cows, dairy productivity has increased compared to other Southeast Asia countries and China. This is an important condition for dairy products to meet domestic consumer demand and exports,” Tong Xuan Chinh said.

Luring investment capital

Commitments in free trade agreements will see import duties reduce, offering opportunities for Vietnamese dairy products to enter foreign markets, while forcing domestic businesses to improve productivity and product quality.

A large wave of investment is pouring into the dairy industry. TH True Milk, Vinamilk, Hoang Anh Gia Lai and Duc Long Gia Lai dairy companies have strengthened investment in modern production lines to compete against imported products.

According to the Ministry of Industry and Trade, the Vietnamese dairy industry has actively applied advanced technology and the quality management system following ISO 9001-2008, ISO 22000 and HACCP standards.

Vinamilk is a typical company in promoting technology innovation. The company inaugurated a VND2.4-trillion milk plant with a capacity of more than 400 million liters a year and a VND2-trillion powdered-milk plant with a capacity of 54,000 tonnes a year, contributing to increasing its presence in 51 countries and territories and bringing revenues of around US$200 million a year.

Quynh Nga & Lan Anh